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Intangible Assets, Net and Goodwill
 6 Months Ended
Jun. 30, 2022
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible Assets, Net and Goodwill

Note 10: Intangible Assets, Net and Goodwill

  

Intangible Assets, Net

 

The Company had the following intangible assets (in thousands) with their weighted average remaining amortization period (in years):

 

Intangible Assets, Net

           
   Weighted Average Remaining Amortization Period 

June 30,

2022

  

December 31,

2021

 
Customer Relationships  9  $22,205   $6,120 
Digital Networks  17   3,607    – 
Trade names  69   11,654    4,000 
Technology  3   300    – 
Non-Compete  2   60    60 
Other Intangible Assets (a)  2   323    301 
Intangible Assets, Gross      38,149    10,481 
              
Foreign Currency Translation Adjustment      (786)   24 
Less Accumulated Amortization      (1,702)   (772)
Intangible Assets, Net     $35,661   $9,733 

__________________ 

  (a) Represents the remaining unamortized logo and website intangible assets related to the merger with A Squared.

 

During the three months ended June 30, 2022 and 2021, the Company recorded amortization expense of $0.9 million and $0.1 million, respectively. During the three months ended June 30, 2022 and 2021, the Company recorded amortization expense of $0.7 million and $0.2 million, respectively.

 

Pursuant to ASC 350-30, General Intangibles Other than Goodwill, the Company reviews these intangible assets periodically to determine if the value should be retired or impaired due to recent events. There were no changes in events or circumstances during the three or six months ended June 30, 2022 that would indicate an impairment of the intangible assets.

 

Expected future intangible asset amortization as of June 30, 2022 is as follows (in thousands):

    
Fiscal Year:    
2022  $1,427 
2023   2,851 
2024   2,827 
2025   2,720 
2026   2,712 
Thereafter   23,124 
Total  $35,661 

 

Goodwill

 

In 2013, the Company recognized $10.4 million in goodwill, as a result of the merger with A Squared. During the first quarter of 2021, the Company recognized $9.6 million in goodwill, as a result of the acquisition of the Beacon Media Group (formerly ChizComm), which was subsequently determined to be impaired as of December 31, 2021, resulting in an impairment charge of $4.8 million and a goodwill balance of $4.9 million.

 

As a result of the Ameba Acquisition during the first quarter of 2022, the Company recorded goodwill of $0.7 million as determined to be the amount in excess of the fair value of the assets acquired and liabilities assumed in the acquisition. The goodwill recorded for the Ameba Acquisition was allocated to the Content Production and Distribution reportable segment.

 

As a result of the Wow Acquisition during the second quarter of 2022, the Company recorded goodwill of $21.4 million as determined to be the amount in excess of the fair value of the assets acquired and liabilities assumed in the acquisition. The goodwill recorded for the Wow Acquisition was allocated to the Content Production and Distribution reportable segment.

 

As Beacon Communications and Wow are incorporated as Canadian companies with CAD being their functional currency, goodwill will change each period due to currency exchange differences.

 

The Company will perform its annual review of goodwill during the fourth quarter of 2022. There were no events or changes in circumstances that would indicate an impairment in goodwill during the six months ended June 30, 2022.

 

The following table summarizes the changes in the carrying amount of goodwill by reportable segment (in thousands):

            
   Content Production & Distribution   Media Advisory & Advertising Services   Total 
Goodwill as of December 31, 2021  $10,366   $4,861   $15,227 
Acquisition of Ameba   673    –    673 
Acquisition of Wow   21,398    –    21,398 
Foreign Currency Translation Adjustment   (558)   (20)   (578)
Goodwill as of June 30, 2022  $31,879   $4,841   $36,720